By Express News Service
MUMBAI: In a surprise move, Zee Entertainment Enterprises Ltd (ZEEL)’s largest shareholder Invesco Developing Markets Fund has dropped its demand to hold an extraordinary general meeting (EGM) to remove the media company’s managing director and CEO Punit Goenka. Just two days ago, the US-registered firm had won a favourable order from the Bombay High Court to pursue its demand for an EGM.
The US-registered investment fund also said that it now supports the Sony-Zee merger deal. “We continue to believe this deal in its current form has great potential for Zee shareholders,” said Invesco, which holds 18% stake in ZEEL. It added that the board of the combined entity will be reconstituted, which will achieve its objective of strengthening board oversight of the company. “Given these developments and our desire to facilitate the transaction, we have decided not to pursue the EGM as per our requisition dated September 11, 2021,” it said.
The Zee stock responded to the news by jumping 17% to Rs 298.9 on the NSE. Invesco said it would continue to monitor the merger’s progress and that it retains the right to requisition a fresh EGM if the merger is not completed as currently proposed. Zee welcomed the decision calling Invesco “an integral part of ZEE’s value-creation journey for almost two decades”.
Regulatory approvalsInvesco’s latest move clears a major litigation overhang on Zee, said Credit Suisse. However, UBS in a note said that the merger requires multiple regulatory approvals, which may take another six months
